Mr. Sandy Poklar reports

FIRM CAPITAL APARTMENT REIT COMPLETES SALE OF AUSTIN PROPERTY FOR $12.6 MILLION

Firm Capital Apartment Real Estate Investment Trust has completed the previously announced sale of one of its properties located in Austin, Tex., for $12.6-million. Net of associated mortgage debt and closing costs, the net sale proceeds of approximately $8.8-million are being used to pay off additional debt, including, but not limited to, the mortgage associated with the trust's other property located in Austin, Tex., bank indebtedness and the vast majority of the $5.1-million ($6.9-million (Canadian)) bridge loan. The property sold had a sales price in line with its international financial reporting standard value. (All figures are in U.S. dollars unless otherwise noted.)

We seek Safe Harbor.